
Consumer Products
The manufacturers and retailers of CPGs face an exciting but unpredictable future, because they are at the intersection of several strong trends:
- Price volatility due to supply chain adjustments, rising costs, and the recognition that price elasticities are lower than previously believed
- Behavioral shifts as consumers trade down, look for bargains, and seek alternative package sizes in response to inflation and uncertainty
- Proliferation of data and analytics which creates unprecedented opportunities for localized pricing and personalized communication
Retailers and CPG companies traditionally play the Uniform Game with consumers, though many are seizing opportunities to play the Choice Game or Dynamic Game as their analytical skills and insights improve. Retailers and CPG companies also play the Power Game in their negotiations with each other.
RECOMMENDED READING
Pricing Enters the C-Suite Agenda
We contend that the right pricing strategy can change the entire trajectory of a business, a market, and even society. Judging from trends in the job market, it seems that…
—> Read MoreMORE consumer products INSIGHTS
The Marketing Challenge Behind CPG Volume Growth
As the CPG industry confronts its post-COVID “new normal,” there is a clear imperative for stronger coordination between marketing and revenue management functions to drive consumption growth. This focus is…
—> Read morePricing Enters the C-Suite Agenda
We contend that the right pricing strategy can change the entire trajectory of a business, a market, and even society. Judging from trends in the job market, it seems that…
—> Read moreWinning the Value Game
When Apple launched its Vision Pro headset in June, the price point of $3,499 grabbed many of the headlines and sparked countless discussions. Was the price too high? Was it…
—> Read moreIKEA defies conventional pricing wisdom
IKEA continues to defy prevailing wisdom and cut the prices for many popular products. Why wouldn’t they try to defend the higher prices they implemented over the last two years?…
—> Read moreMichael Jackson’s music catalog
Michael Jackson’s music catalog may be worth as much as $1.5 billion, according to report in Billboard last week that described Sony Music Group’s purchase of a 50% stake. The deal reportedly…
—> Read moreWhat do you think of congestion pricing?
What do you think of congestion pricing to keep motor vehicles out of city centers? Would you want it in your city? The city of Boston, Massachusetts, opened discussions about…
—> Read moreThe carry-on baggage bubble is about to pop
American Airlines announced this week that they will increase the first checked bag fee from $30 to $35 if purchased in advance online and $40 at the airport. It marks…
—> Read more
